Transcript Highlights:

• These funds will support positions in contracting services to support community engagement and coordination
• These funds will support positions in contracting services to support community engagement and coordination
• Long-term services and supports will continue to be accessed through the fee-for-service system, including
• services, to tighten the requirements concurrent to the referral for IHSS, or In-Home Supportive Services
• that provide health and supportive services to over 90,000 individuals.

Keywords: 988, house, all

Summary: The Assembly Budget Subcommittee on Health heard presentations on several May Revision proposals, beginning with an overview from the Legislative Analyst’s Office and the Department of Finance on the state’s budget condition and the administration’s efforts to reduce out-year deficits through a mix of revenue measures, fund shifts, and program reductions. The chair expressed support for some administration proposals, such as added health IT funding, county administration support, a delay in Medi-Cal cuts for some immigrants, and additional Covered California subsidy backfill, but also criticized proposed Medi-Cal premiums, changes to senior eligibility, the lack of a Medi-Cal dental solution, and other cuts affecting counties, workforce, and rural access. The LAO said the budget still relies heavily on reserves and borrowing and urged more reserves and caution on new commitments. The Department of State Hospitals presented several proposals, including reduced county bed billing authority, limited contract exemption authority for online clinical subscriptions, reversion of unspent prior-year funds, additional lease revenue authority for the Metro Central Utility Plant replacement, funding for electronic health record implementation, and a shift of workforce development costs to Behavioral Health Services Act funds. The department also described savings and realignments in its IST and CONREP programs, including making the Independent Placement Panel permanent and adjusting funding for jail-based competency treatment and conditional release services. Members questioned the BHSA workforce funding swap, and the administration said it was part of a broader General Fund offset strategy. The Emergency Medical Services Authority requested funding for statewide behavioral health crisis response guidance and for continued operation of its enterprise systems, and the Department of Managed Health Care sought funds to modernize its complaint system and claims settlement data systems. The largest debate centered on the administration’s proposed use of Behavioral Health Services Act revenues to offset General Fund spending and fund state-directed behavioral health programs. The Department of Finance said the proposal would support population-based prevention, workforce programs, mobile crisis services, and other state-directed uses, while the LAO said it was still reviewing whether the uses comply with Proposition 1 and whether the non-supplement and eligible-use requirements are met. The Commission for Behavioral Health strongly opposed proposed cuts to its Innovation Partnership Fund and community advocacy grants, arguing that both programs are central to community voice, culturally responsive services, and statewide innovation. Commissioners and many public commenters said the cuts would reduce grants to community-based organizations, tribal groups, veterans, LGBTQ communities, youth, and other underserved populations, and that the advocacy program helps communities participate in local planning and access services. The Department of Finance defended the reductions as a way to prioritize direct services and said the programs fit within Proposition 1, but members criticized the proposal as a midstream shift that would weaken community engagement and redirect funds away from prevention and advocacy.

Transcript Highlights:

• Your support for community services is crucial.
• As both the demand for this critical recovery support service and the need to support people to access
• I'm here today to support rate increases for therapy services.
• There is both a need for this critical recovery support service as well as the need to support people
• This investment in supportive services helps children avoid relinquishment to the state.

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• as different supports and services such as different supports and services such as psychotherapy,
• It can increase access to services and supports.
• that service and support is being that service and support is being developed<00:12:30.320> in
• they intensive supports and services as they intensive supports and services as they then<00:14:23.600
• <00:19:06.080> continued services and supports with the continued services and supports with

Keywords: 1183, house

Transcript Highlights:

• This would increase that 14 days to 30 days to make sure that we can add transitional support services
• I'm here today in support of H. 1319, an act related to comprehensive clinical and extended support services
• I'm here today in support of H. 1319, an act related to comprehensive clinical and extended support services
• This bill would require all insurers to cover medically necessary transitional support services.
• non-clinical services like family education and work and education support.

Keywords: 995, all

Summary: The committee held a hearing on a large group of behavioral health and insurance-related bills. Topics included expanding access to mental health services by allowing physician assistants to authorize Section 12 emergency holds and be recognized as licensed mental health professionals (H. 1131/S. 773); improving coverage for community behavioral health centers so commercial insurance matches MassHealth’s bundled outpatient and crisis services (H. 1276/S. 703); eliminating cost sharing for certain behavioral health services (S. 718); extending detox and clinical stabilization coverage from 14 to 30 days and adding transitional support services (H. 1319/S. 772); requiring coverage for dual-diagnosis treatment in psychiatric facilities (H. 1277/S. 771); and preserving access to treatment for serious mental illness through coverage of coordinated specialty care and assertive community treatment (H. 1135/S. 709). The committee also heard bills on preventive behavioral health services for children (H. 1228/S. 802) and post-pregnancy mental health care, including postpartum depression and pregnancy loss-related care (H. 1314/S. 823).

Transcript Highlights:

• Mahalo. representation and support services for representation and support services for these<01:07:51.039
• Mahalo for your support of Hawaii’s aging community. >> Project Expedite Justice. the support and services
• I'm here to Support Services.
• Without state support, many of these free services, support groups, early detection, and caregiver programs
• c><03:09:27.359> early free services, support groups, early free services, support groups, early

Keywords: 912, senate, all

Summary: This joint informational briefing focused on Act 310 grants and aid, with committee members hearing one-minute testimony from organizations first in person and then by Zoom. At the outset, the chairs explained there would be no Q&A during the briefing and asked testifiers to focus on how federal cuts were affecting their work. The meeting was organized by registration number and included both neighbor island and Oʻahu applicants. Testimony centered on organizations seeking state support to offset federal funding losses or anticipated reductions. Health and social service providers described impacts from Medicaid, SNAP, ACA subsidy, Title X, and other federal changes, including Aloha Care, Community Clinic of Maui, Healthy Mothers Healthy Babies, West Hawaiʻi Community Health Center, Hawaiʻi Disability Rights Center, Hawaiʻi Youth Services Network, Alcoholic Rehabilitation Services of Hawaiʻi, and Kokua Kalihi Valley. Other groups highlighted losses affecting food security, housing, disaster preparedness, and climate resilience, including the Kohala Center, Feeding Hawaiʻi Together, Hawaiian Lending and Investments, Dynamic Community Solutions, and the Pacific Tsunami Museum. Several arts, youth, and education organizations also testified, including Hawaiʻi Literacy, Hawaiʻi Youth Symphony, Honolulu Theatre for the Youth, Sounding Joy Music Therapy, Big Brothers Big Sisters Hawaiʻi, Girl Scouts of Hawaiʻi, Kids Hurt Too Hawaiʻi, and US Vets, each requesting funding to preserve programs and staffing. No votes or formal committee actions were taken during the briefing. The only action was procedural: the chairs moved through the applicant list, limited testimony time, and then transitioned from neighbor island in-person testimony to Oʻahu and later Zoom participants.

Transcript Highlights:

• However, support divisions within the department such as human services, legal, and fiscal services have
• We provide child care and family support services to over 60... accurately reflects the real cost of
• We provide child care and family support services to over 60. Good afternoon.
• pool of qualified immigration attorneys and to support the immediate and growing demand for services
• to support a $50 million increase so more families can have access to these critical services.

Summary: The committee heard an extensive Department of Social Services presentation on child care budget issues, including the Governor’s proposed 2026-27 budget, federal CCDF changes, Prop. 64 revenue adjustments, and a one-time $11.5 million disaster-related infrastructure grant for licensed child care facilities affected by 2025 declared disasters. DSS said federal formula updates and lower Prop. 64 revenues would reduce funding and could result in about 4,176 CCTR slots being reduced, but the department said it was working to avoid impacts to currently enrolled children. The LAO supported aligning general child care funding with lower revenues and asked for more detail on the disaster grant. Members pressed DSS and Finance on why reductions were not being backfilled and why so many awarded slots remain uncontracted or unused; DSS said delays are largely due to providers building new infrastructure, licensing, staffing, and enrollment challenges, and that some unspent funds revert to the General Fund. The committee also discussed whether some contract dollars should be shifted to vouchers and whether more flexibility should be allowed for infrastructure and expansion costs. A second panel focused on the state’s commitment to expand child care and on rate reform. DSS reported that nearly 125,000 new slots have been awarded since 2021-22, but speakers from Stanislaus County Office of Education, Parent Voices California, and the California Budget and Policy Center argued that unmet need remains large and that the system still leaves many families without access. Stanislaus County described a large local shortage of infant and toddler care and said reimbursement disparities between child care programs and state preschool create disincentives for providers. Parent Voices gave testimony about the burdens and instability families face when trying to access care, especially for survivors and low-income parents, and called for a universal, publicly funded system. The Budget Center said only about 16% of eligible children were enrolled in 2024, urged expansion across the mixed delivery system rather than concentrating investment in TK, and called for faster rate reform and new revenue. LAO estimated that bringing certain CCTR adjustment factors up to CSPP levels would cost $88 million to $131 million ongoing. Members and witnesses discussed the single rate structure, automation needs, and the need for deadlines and a ramp-up plan; DSS said the goal is to eliminate disparities, but that policy decisions are still needed before automation can proceed. The committee then reviewed several trailer bill proposals. DSS outlined a 2026-27 COLA proposal that would apply a 2.41% increase through cost-of-care-plus payments, though the department said it had inadvertently excluded CalWORKs Child Care and the Emergency Child Care Bridge Program and would revise the proposal; LAO recommended making the COLA methodology uniform across programs. DSS also proposed replacing the market rate survey with the federally approved alternative methodology on a triennial schedule, limiting temporary absences in family child care homes to 20% of monthly hours, defining excessive unexplained absences as more than 30 days in a year, and aligning family fee deductions with new federal requirements so providers receive the full voucher value. Members generally supported the temporary absence change and asked about implementation timing for the family fee deduction, with DSS saying it was in contact with Riverside County. The committee also heard a brief update on the Early Childhood Policy Council reappropriation, which would extend unused funds through June 30, 2028 because prior costs came in higher than expected.

Transcript Highlights:

• We all want children and families to be able to access the tangible supports and ongoing services that
• It is critical to build, to the prior question, the community-based supports and services.
• . support, college and career readiness, and family supportive services.
• Department of Child Support Services. With me is Nan Chen, Chief Financial Officer.
• Impacts to our local child support agencies that are delivering the service directly.

Keywords: 988, house, all

Transcript Highlights:

• CPAN supports the continuation and increases to the services in item 3, the immigration services that
• As a direct service provider, we see firsthand the increase in need for support services for refugees
• We've emphasized access to barrier removal and supportive services.
• We have to improve access to supportive services.
• Access to so many people who need the overall supports and services.

Keywords: 988, house, all

Transcript Highlights:

• However, support divisions within the department, such as human services, legal, and fiscal services,
• pool of qualified immigration attorneys and to support the immediate and growing demand for services
• programs, but to support a $50 million increase so more families can access these essential services
• We also want to voice our strong support for the funding of immigration legal services and highlight
• We also want to voice our strong support for the funding of immigration legal services and highlight

Keywords: 987, senate, all

Summary: The committee heard a lengthy budget and policy discussion on child care, child welfare, and related early education issues, beginning with child care funding and slot utilization. Department of Social Services officials outlined the Governor’s proposed 2026-27 child care budget, including $6.8 billion for child care programs, an $11.5 million Prop. 64-funded disaster repair mini-grant program for licensed facilities affected by 2025 disasters, and projected reductions tied to federal CCDF formula changes and lower Prop. 64 revenues. DSS said the reductions could mean about 4,176 CCTR slots, but emphasized they were assessing how to absorb the cuts without disrupting children currently in care. The LAO supported aligning funding to lower revenues and asked for more detail on the disaster grant program. Senators pressed the department on why so many slots remain uncontracted or unfilled, why unspent funds revert to the General Fund, and whether more flexibility could move dollars from contracts to vouchers; DSS said delays are largely due to infrastructure, licensing, staffing, and enrollment ramp-up, and that it is working on readiness reviews, technical assistance, and possible reallocation of relinquished slots. The committee also discussed Emergency Child Care Bridge reallocations among counties and confirmed that no currently enrolled children would be disenrolled under the proposed slot reductions. A second panel focused on the state’s broader commitment to expand child care and reform reimbursement rates. DSS said California has nearly doubled child care funding in five years and increased monthly children served from about 294,100 in 2019-20 to more than 366,700 currently, while also advancing the single rate structure process through the alternative methodology and a joint labor-management committee report. Stanislaus County Office of Education described local shortages, especially for infant and toddler care, and argued that rate disparities between programs make it harder to sustain mixed delivery systems. Parent Voices California testified that the current system is confusing, unstable, and inequitable, with one speaker describing repeated paperwork burdens, waiting lists, and periods of homelessness while trying to maintain child care. The California Budget and Policy Center argued that only 16% of eligible children were enrolled in 2024, that Universal TK has drawn major resources into school-based care, and that providers remain paid far below the cost of care; it urged more revenue, faster rate reform, and expansion across the mixed delivery system. The LAO estimated that aligning CCTR adjustment factors for three-year-olds and children with disabilities with CSPP would cost $88 million to $131 million ongoing. Senators and staff also discussed the need for deadlines on automation and implementation of the single rate structure, with DSS and CDE noting that policy decisions, system changes, and collective bargaining issues are still being worked through. The committee then reviewed several child care trailer bill proposals. DSS proposed applying the 2026-27 COLA as an increase to cost-of-care-plus payments rather than as a traditional COLA, with $87.8 million General Fund initially proposed; DSS later acknowledged it had omitted CalWORKs Child Care and the Emergency Child Care Bridge from the calculation and said the amount would be revised upward. The LAO recommended making the COLA treatment uniform across child care and state preschool programs. DSS also proposed replacing the market rate survey with the federally approved alternative methodology survey on a triennial schedule, limiting temporary absences for licensed family child care homes to 20% of care hours in a month, defining excessive unexplained absences as more than 30 days in a 12-month period, and aligning family fee collection so contractors collect the fee without reducing the voucher value. The department said these changes are intended to bring state law into compliance with federal requirements and to better reflect current practice. Finally, the committee discussed the Early Childhood Policy Council, including a reappropriation of previously unused funds and a new reporting requirement under AB 563; members questioned staffing needs and whether existing contractor support could absorb the work, while DSS said the funds are used for stipends, facilitation, translation, and contract oversight and may still be needed as participation patterns change.

Transcript Highlights:

• Second, it funds service providers that offer no-cost housing support to veterans facing sudden income
• Second, it funds service providers that offer no-cost housing support to veterans facing sudden income
• This support exists because we understand that military service creates sudden, significant disruption
• This support exists because we understand that military service creates sudden, significant disruption
• Veronica Padilla on behalf of Navy Region Southwest and the military services in California in support

Keywords: 987, senate, all

Transcript Highlights:

• Mahalo. representation and support services for representation and support services for these<01:11:26.640
• <01:39:27.199> services end up being emergency support services end up being emergency support
• My name is Adele Baguarena, CEO of Maui Family Support Services.
• My name is Adele Baguarena, CEO of Maui Family Support Services.
• c><03:13:02.960> early free services, support groups, early free services, support groups, early

Keywords: 910, house, all

Summary: This joint informational briefing on Act 310 grants and aid focused on organizations describing how federal funding cuts, Medicaid/SNAP changes, and related policy shifts are affecting their services and budgets. Committee members explained there would be no Q&A, testimony would be limited to one minute, and in-person participants would be heard before Zoom callers. Members repeatedly asked testifiers to identify the amount of federal funding lost or at risk. Testimony came from a wide range of nonprofits and community providers, including Aloha Care, Hawaii Bicycling League, Hawaii Literacy, Hawaii Youth Symphony, Healthy Mothers Healthy Babies Coalition of Hawaii, the Tsunami Museum, The Kohala Center, West Hawaii Community Health Center, West Hawaii Region Hospital Foundation, Sounding Joy Music Therapy, Big Brothers Big Sisters Hawaii, Dynamic Community Solutions, Feeding Hawaii Together, Girl Scouts of Hawaii, Hawaii Disability Rights Center, Hawaii Youth Services Network, Hawaiian Lending and Investments, Homana, Honolulu Theatre for the Youth, Kids Hurt Too Hawaii, and Kokua Kalihi Valley. Most described reduced or threatened federal support and requested state funding to maintain services such as health care access, food security, disaster preparedness, literacy and digital inclusion, youth mentoring, arts education, housing, and climate or agricultural resilience. Several speakers emphasized direct impacts on vulnerable populations, including kūpuna, low-income families, immigrants, homeless youth, and people with disabilities. Requests ranged from relatively small planning or program grants to multi-million-dollar stabilization asks, with some organizations citing specific losses such as reduced Medicaid or USDA funding, canceled EPA or FEMA support, or expiring federal grants. No votes or formal committee actions were taken during the briefing.

Transcript Highlights:

• So we'll do Part A, which is the human services, child welfare, child support issues.
• Of Child Support Services.
• benefits can help support case, For providers to clarify how the fee-for-service benefits can help support
• Long-term services and supports, including...
• Long-term services and supports, including home and community-based services, are not impacted.

Keywords: 987, senate, all

Summary: The subcommittee first heard May Revision items for child support, child care, and related human services. The Department of Child Support Services described two technical adjustments, which the LAO said raised no concerns. The Department of Social Services then walked through child care proposals, including a shift in how federal and Proposition 64 funding reductions would be absorbed, a 2.01% COLA, disaster-related child care infrastructure grants, an increase in in-contract administrative support costs for alternative payment agencies, reversion of prospective-pay implementation funding after a federal rule change, a one-time allocation to cover the first quarter of Cost of Care Plus payments in the next fiscal year, reappropriation for existing infrastructure grant closeout work, and estimates of unspent child care funds. The department also outlined trailer bill language on a single rate structure, site safety and emergency procedures, CalWORKs child care data sharing, and child care oversight. The LAO recommended that the Legislature seek more justification for shifting reductions from General Child Care to the Alternative Payment Program, noting that CAP reductions affect more slots and that General Child Care has had significant unspent funds. It supported removing prospective-pay funding, but recommended rejecting the administrative cost shift to a percentage-based rate because it could create future General Fund pressure. It also suggested the Legislature review alignment between the disaster grants and the child care infrastructure program. Senators and members pressed the administration on why the budget would reduce child care slots and COLA percentages while the state still has waitlists and unspent funds, and questioned the need for early funding of Cost of Care Plus payments and the move from a flat administrative amount to a percentage. Public commenters, including providers, advocates, county offices, and infrastructure partners, urged full COLA funding, preservation of child care slots, support for prospective pay, and continued investment in child care access and facilities. After a short recess, the committee moved to Part B on health and heard the Department of State Hospitals. DSH presented a May Revision budget of $3.2 billion and described proposals for a central utility plant replacement at Metropolitan State Hospital, an electronic health record implementation, reduced county bed billing authority due to phased-in LPS bed capacity, limited contract exemption authority for online clinical subscriptions, reversion of prior-year unspent operating funds, and a workforce development proposal shifting some costs to Behavioral Health Services Act funds, including support for an additional psychiatric training cohort at Napa. The department also outlined IST-related savings and a trailer bill to remove the sunset on the independent placement panel program.

Transcript Highlights:

• Act through the behavioral health services and supports component.
• and behavioral health services and supports.
• The support platforms, yeah, for youth, and maybe fee-for-service.
• Hirsch from L.A., and the crisis support services of Alameda County.
• in a manner that is not clinically supported. ...services in a manner that is not clinically supported

Keywords: 987, senate, all

Summary: The subcommittee heard updates from the Department of State Hospitals on its proposed 2026-27 budget, including a $3.2 billion total budget, patient-driven operating cost increases, savings in the IST solutions program, and progress in meeting the Stiavedi court-ordered 28-day treatment standard. DSH reported it has met court benchmarks, reduced the IST pending placement list from a pandemic high of 1,953 to about 250, and is now averaging about five days to initiate treatment. Members asked about the effects of Proposition 36 and SB 1323 on referrals, outside hospitalization costs, Medicare coverage, and whether IST solution funds were being overbudgeted; DSH said referrals are slightly down overall, outside medical costs are rising due to inflation and an aging population, and the IST savings reflect slower-than-expected activation of community programs rather than a service gap. The department also outlined proposed funding for electrical infrastructure upgrades at Napa and Patton, a feasibility study under SB 380 for transitional housing for the CONREP SVP program, and a dental services expansion at Metropolitan and Patton. The committee held those DSH items open after discussion. The Commission for Behavioral Health presented its role in overseeing the transition from MHSA to BHSA, including data, evaluation, transparency, grantmaking, and technical assistance. It described the new Innovation Partnership Fund, a statewide innovation grant program funded at up to $20 million annually for five years, with small and large grants, and said it had received strong interest ahead of the May 8 application deadline. Members asked about what qualifies as innovation, whether grants could be renewed, and how the state would ensure the program supports service delivery rather than general outreach or training. The commission also sought a liquidation deadline extension for up to $4.062 million in remaining Alcove Youth Drop-in Center funds so sites can finish implementation and Stanford can complete the final evaluation; that item was also held open. DHCS provided an overview of behavioral health policy changes under CalAIM and BH Connect, including peer support, mobile crisis, contingency management, traditional health care practices for tribal members, the access reform and outcomes incentive program, workforce investments, evidence-based practice expansion, IMD participation, transitional rent, and upcoming youth-focused guidance such as high-fidelity wraparound and activity funds. On BHSA implementation, DHCS said it is not tracking specific local program cuts, but is monitoring county plans and outcomes while noting that counties must still preserve Medi-Cal specialty mental health and DMC-ODS services. The department also discussed its H.R. 1 implementation strategy, including outreach, streamlined renewals, ex parte exemptions, and proposed clinic navigator and outreach funding to reduce Medi-Cal coverage loss, especially for people with behavioral health needs. In response to questions, DHCS said it has not produced a specific H.R. 1 impact estimate for county behavioral health populations, and later explained that counties can still use BHSA and other funding streams for prevention and early intervention while the state tracks impacts through integrated plans and new performance measures. The department also reported on BH-CHIP bond spending, saying it has awarded $5.8 billion for 437 infrastructure projects creating 546 new or expanded facilities and more than 9,553 residential beds, with tribal set-asides exceeding the original allotment.

Transcript Highlights:

• These services included insurance assistance, medical procedure explanations, caregiver support, and
• Every single person who provides service to support Luca, either directly or indirectly, is compensated
• Every single person who provides service to support Luca, either directly or indirectly, is compensated
• Your constituents are assisted by coming to our pay centers or receiving support services in their homes
• These funds were intended to support students with disabilities and special education services, not to

Keywords: 995, all

Summary: The Joint Committee on Health Care Financing held a public hearing focused on two broad sets of issues: home- and community-based care, and school-based Medicaid reimbursement. In the morning session, legislators and advocates testified on bills affecting children and disabled enrollees, including proposals to clarify rate-setting for home health and home care services (H. 767/S. 870), allow family members and spouses to be paid caregivers under MassHealth (H. 1394/S. 886 and related bills), extend MassHealth coverage for applied behavior analysis and other therapies beyond age 21 for adults with autism and developmental disabilities (H. 1351/S. 871), and protect medically fragile children by improving access to continuous skilled nursing. In the later portion of the hearing, testimony shifted to a bill to improve MassHealth reimbursement for schools (S. 862), with speakers describing the school mental health crisis and the need to reinvest Medicaid funds directly into school health services. Witnesses on the home care rate-setting bill said current reimbursement methods are opaque and outdated, contributing to workforce shortages, unfilled shifts, long waitlists, and patients remaining in hospitals longer than necessary. Home care providers and trade groups argued the bill would not set rates directly but would require more transparent methodology and fuller consideration of real costs such as wages, benefits, taxes, training, and technology. On caregiver bills, many family members and provider organizations described the financial and emotional strain of caring for disabled or medically fragile relatives, especially when parents, spouses, or guardians are barred from being paid caregivers. They argued the bills would recognize existing unpaid care, help families remain at home, and reduce reliance on more expensive institutional care. Advocates for adult ABA coverage said services remain medically necessary after age 21 and that ending coverage at that age creates an inequitable “cliff” for MassHealth members compared with those with private insurance. For the PACE/community care bill, elder law attorneys and PACE advocates said current MassHealth income rules force some older adults with modestly higher incomes to spend down to $542 per month, making community living unrealistic and pushing people toward nursing homes. They supported changing the eligibility structure to a premium-based approach that would allow more people to remain in the community. On the school Medicaid bill, advocates said schools are providing effective, preventive mental health care, but reimbursement currently flows to municipalities rather than directly back to school health budgets, limiting districts’ ability to hire and retain staff. No votes were taken during the hearing; the committee heard testimony and several witnesses requested favorable reports on the bills.

Transcript Highlights:

• To support the operationalization of the enterprise services data management system.
• Using funds from the behavioral health services and supports allocation.
• Child welfare services includes family support and maltreatment prevention services, child protective
• But we would like to also voice our support for investments for the immigrant legal services.
• But we would like to also voice our support for investments for the immigrant legal services.

Keywords: 987, senate, all

Summary: The hearing opened with Department of Finance and Legislative Analyst’s Office remarks on the May Revision, which both described efforts to reduce large out-year operating deficits through a mix of revenue increases, spending reductions, and reserve use. Finance said the May Revision more than halves projected deficits in later years, while LAO stressed that revenues are at unprecedented levels yet the state still faces a significant structural deficit and is drawing down reserves; LAO urged maintaining at least the administration’s level of budget solutions and adding to reserves rather than new ongoing commitments. The chair echoed concern about cuts to vulnerable populations and noted the tension between service reductions and requests for additional administrative positions. The committee then heard a series of California Health and Human Services and HCAI proposals, including additional legal support for CalHHS to respond to federal HR1 changes; a net-zero transfer of positions for a centralized eligibility/data-sharing platform; 988 crisis line implementation funding and continued work with the Trevor Project to train crisis centers to better serve LGBTQ youth; EMS data system maintenance funding; HCAI implementation of AB 1312 hospital charity care screening; SB 660 data exchange framework funding; CalRx biosimilar insulin reappropriation; and a diaper access initiative that would provide free diapers to newborns in participating hospitals and support a future direct-to-consumer purchasing option. Members questioned the diaper program’s universal design, the use of a Public Contract Code exemption, and the selection of Baby2Baby, with the chair expressing concern about optics and the lack of an income threshold. The committee also discussed distressed hospital funding, with HCAI requesting up to $50 million for another round of grants to hospitals in immediate financial distress. HCAI said it receives annual and quarterly financial reports but the data lag limits real-time monitoring, and the LAO recommended stronger program parameters and turnaround plans. Members argued the repeated need for distressed hospital aid reflects a structural problem, not a short-term gap, and raised broader concerns about hospital reimbursement and patient flow. Other items included reverting $19.6 million in unused opioid settlement funds from HCAI to DHCS for General Fund offset, and a Rural Health Transformation Program request to increase HCAI spending authority to cover the full federal award. Later, DMHC presented funding requests to implement PBM licensing and financial review requirements under AB 116, modernize the managed care complaint system, and build an electronic claims settlement data system under AB 3275. The final major discussion focused on the Behavioral Health Services Oversight and Accountability Commission, which opposed the May Revision’s proposed reduction of its Innovation Partnership Fund from $20 million to $10 million and a $6.7 million cut to community advocacy grants. The Commission argued these programs are core to Proposition 1’s goals of statewide innovation and community accountability, while Finance said the proposal is consistent with Proposition 1’s maximum funding levels and reflects a broader effort to prioritize direct services and use unspent prior-year funds; members pressed for more information and questioned whether the cuts would undermine the new behavioral health framework.

Transcript Highlights:

• They include CalWORKs, CalFresh, and the In-Home Supportive Services Program.
• They include CalWorks, CalFresh, and the In-Home Supportive Services Program.
• long-term services and supports system.
• , child welfare services include family support and maltreatment prevention services, child protective
• Child Support Services, number 57. And you may begin when you're ready.

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on the Governor’s May Revision, with no votes taken. The first major topic was child care and early education, where the Department of Social Services and Department of Finance outlined proposed changes to absorb federal Child Care and Development Fund and Proposition 64 revenue reductions, shift some funding between child care programs, end funding for prospective pay implementation now that the federal requirement has been rescinded, adjust the alternative payment administration structure, and fund child care infrastructure grants and a Low-Income Investment Fund contract closeout. The Legislative Analyst’s Office said the budget makes progress on the structural deficit but recommended maintaining the administration’s solution level, making reserve deposits, and avoiding new ongoing commitments; it also raised concerns about shifting reductions to the California Alternative Payment Program and about the proposed administrative-rate change. Committee members strongly criticized the proposed loss of child care slots and said they would oppose eliminating those slots, while also expressing support for child care as essential infrastructure. The committee then reviewed California State Preschool Program proposals. Finance and CDE described reductions to the preschool COLA from 2.41% to 2.01%, removal of prospective pay funding, and increases for the QRIS block grant, audit support, and rate reform implementation. Trailer bill language would codify age-based rate categories, inclusion-rate documentation, family fee collection rules, portability, and excused absences. CDE supported the QRIS increase and some attendance and family-fee changes, but warned that aligning three- and four-year-old rates could reduce support for three-year-olds and that the budget does not fully cover enrollment growth. Members also questioned whether the preschool and child care slot reductions should be reallocated rather than terminated, and the administration said the reductions were intended to reflect current utilization and avoid harm to currently enrolled families. The hearing then moved to CalFresh and nutrition programs. CDSS said the May Revision includes a one-time CalFood augmentation, funding to cover federal SNAP administrative cost-share pressures, and additional staffing and technical assistance to implement HR 1 changes, including the able-bodied adults without dependents time limit and new non-citizen eligibility rules. The department estimated HR 1 could cut CalFresh funding by $2.3 billion to $3.7 billion annually and affect about 500,000 people, with roughly 806,000 adults potentially subject to the time limit and about 34,000 non-citizens expected to lose eligibility once fully implemented. Members pressed for stronger harm mitigation, including a $98 million backfill to protect families from losing food benefits, and raised concerns about county workload and the “chilling effect” on immigrant participation. The final portion of the transcript began the IHSS presentation, noting a revised budget of $33.7 billion total funds and $12.8 billion General Fund, with proposed reductions tied to Medi-Cal asset-limit changes and other federal conformity items.

Transcript Highlights:

• On being able to have the funding and support that they need for prevention services, frontline services
• supports such as housing transition navigation services.
• least 10 community support services, with 40% having access to all 14.
• And long-term supports and services into managed care.
• housing support services.

Keywords: 988, house, all

Transcript Highlights:

• That support is critical for hospital services.
• All that money went from our support services.
• including services to support veterans' mental health and wellness.
• services agencies that provide long-term services and supports, including attendant and nursing services
• Another method to reduce state health care costs would be to support adding nutrition support services

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• The VR Basic Support Grant is the primary federal grant supporting VR services.
• We have transition Job coaches who provide support services to students ages 13 to 21.
• She received counseling and guidance services, transition services, academic support, transportation
• Vocational services and other supports.
• support, rehabilitation technology services, workplace accommodations, and other supports.

Keywords: 977, all

Summary: The committee met to receive a detailed financial operations presentation from the South Carolina Vocational Rehabilitation (VR) agency, with staff walking members through funding sources, budgeting, accounts receivable, accounts payable, and grants management. Sabrina Walker explained VR’s blended funding structure, including federal grants, state appropriations, program income, and interagency contracts, and emphasized that state funds are essential to meeting the federal match and maintenance-of-effort requirements. Members asked repeatedly about transparency, audit controls, and the risk that state cuts could reduce federal drawdowns; staff responded that all reports reconcile back to the SCEIS accounting system, are subject to state audits and internal reviews, and that even modest state reductions could significantly reduce total available funding. The committee also discussed pre-employment transition services for students with disabilities, with staff confirming services are offered through school districts, charters, and private schools, and that contracts are monitored for performance and compliance. The presentation then shifted to budgeting and internal controls. Walker described a zero-based departmental budgeting process, monthly monitoring reports, contingency reserves for unexpected expenses, and a formal annual cycle that culminates in board approval. Members asked about facilities tracking, culture, and how the agency maintains accountability; staff said facilities staff inspect buildings and equipment, supervisors justify line-item requests, and the process has become smoother over time as departments learned the system. Cynthia Johnson followed with an accounts receivable overview, describing invoicing, receipting, aging, customer verification, year-end reporting, and the use of cross-training, shared email inboxes, and spreadsheets as checks and balances. She also explained work training center billing, interdepartmental transfers, and the revolving fund used to issue consumer checks more quickly than standard vendor payments. Olivia Perez presented accounts payable operations, including invoice processing through SCEIS and OnBase, the three-way match, travel reimbursements, revolving fund checks, State Treasury Office interactions, and handling of reversals, rejections, and levy notices. She reported that AP processed 67,723 SCEIS payments, 13,670 case management system invoices, 3,379 travel reimbursements, and 15,693 revolving fund checks in fiscal year 2025, with only 70 payment rejections. The final portion of the meeting covered Grants and Funds Management, where Walker explained federal reporting, drawdowns, payroll allocation, asset tracking, lease and IT contract reviews, cost allocation, and closing packages. She noted upcoming system changes such as S/4HANA, Workiva, and SC Pro, but said the agency is receiving training and feedback opportunities. No formal votes or legislative actions were taken during the presentation portion beyond approval of the prior minutes and a brief recess.

Transcript Highlights:

• It is critical to build, to the prior question, the community-based supports and services.
• , college and career readiness, and family supportive services.
• It builds on prior CCR efforts to bring direct services and supports into family-based settings.
• Kristen Erickson Donadie, Director for the California Department of Child Support Services.
• The Department of Child Support Services, as well as the Department of Social Services, to make sure

Summary: The Assembly Budget Subcommittee on Human Services held an informational hearing on child welfare, foster care, child support, and related prevention efforts. The chair opened by emphasizing mandated reporting reform, foster care system improvements, and community-based prevention, and noted that no votes would be taken. Public testimony focused first on mandated reporting, where a lived-experience advocate and several organizations argued that the current system overreports families, especially Black, Native, and Latino families, causes trauma, and should be reformed through standardized training, clearer thresholds, and stronger community supports rather than more hotline referrals. Casey Family Programs cited data showing nearly 90% of reports are unsubstantiated, while CDSS said it is already forming a Mandated Reporting Advisory Committee, updating training, and exploring community pathways and possible changes to the list of mandated reporters. CWDA and SEIU supported training and alternative response concepts but stressed child safety, county capacity, funding, and the need for careful implementation and accountability. The committee then discussed a proposal to create a foster care multi-agency office within the California Health and Human Services Agency, led by a chief foster youth advocate with authority to coordinate across departments. Advocates said foster youth often need services from education, health, housing, and behavioral health systems that do not coordinate well, and argued that a central office with real authority could improve placement stability and access to services. CDSS responded that existing structures already provide coordination, including AB 2083 interagency teams, the Child Welfare Council, complex care steering committees, and the foster care ombudsperson, but said it was open to technical assistance. Members raised concerns about whether the new office would have enough authority and funding to avoid becoming another layer of bureaucracy, and the chair emphasized the need for real “teeth” and better interagency action. The final major topic was the continuation and expansion of Promise Neighborhoods. A community leader described strong early results from the state-funded neighborhoods, including improved kindergarten readiness, reduced chronic absenteeism, higher graduation rates, food access, housing supports, and mental health services, but warned that current funding sunsets in June 2025 and that a fiscal cliff could jeopardize staff and services. CDSS said the four funded neighborhoods have reported positive outcomes and valuable flexibility, but also noted challenges with one-time funding, student mental health, and long-term planning. Assemblymember Mia Bonta urged continued investment, saying the place-based model is difficult to rebuild once lost, and the chair asked LAO to help identify the minimum funding needed to preserve the existing infrastructure while evaluation results are still pending.